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How to Track Inventory Turnover in Quickbooks

How to use Quickbooks to track Inventory?

Q Finacial Advisors

The task of tracking and managing inventories is a hassling one. But at the same time, it is one of t he most critical steps. With the help of inventory tracking, you can have a perfect assurance that you have enough stock to handle your customers. Many types of software offer inventory tracking and inventory management features. Above all, QuickBooks is one of the demanding and renowned accounting software. It has lots of users globally, and it also offers an inventory tracking feature for your products. Initially, the inventory tracking option is auto-disabled at the time of installation. You will have to enable it manually. Once you allow it, you can QuickBooks to track inventory and manage your products efficiently.

Is Inventory Tracking Important?

Of course, it is! Inventory tracking is an essential step to ensure that you have enough products to fulfill any of your past or future customer orders. Apart from it, you can also determine your profit and losses on each product, i.e., your profit margin. If you notice that your profit margin is not good for a product, you can then remove it from your catalog. But all these calculations are possible only when you have software such as QuickBooks.

What are the Benefits of Using QuickBooks to Track Inventory?

Users avail a lot of benefits by using QuickBooks to track inventory. A few of the ones are listed below.

  1. QuickBooks tracks not only the inventory list but also the cost of each sold product.
  2. QuickBooks tracks the total sales of your products.
  3. You can easily track which products are still in the stock and which are out of stock.

How to Check Valid Subscription for Inventory Tracking in QuickBooks?

Sometimes many users fail to enable the feature of inventory tracking. As a result, they are unable to use QuickBooks to track inventory. The common cause behind these types of issues is subscription plans. You will not get the option of inventory management with every plan. Inventory tracking and management are only available with the QuickBooks Plus subscription plan.

To check your subscription plan, follow the steps below.

  1. Open QuickBooks and click the gear-shaped icon to open the menu.
  2. In the menu, click in Account and Settings.
  3. Under Accounts and Setting, click Billing and Subscription.
  4. You can review your plan, and in case you are not eligible for inventory tracking, you can upgrade your current plan to Plus edition.

Setting Up and Tracking Inventory in QuickBooks

Before setting up and tracking your inventory in QuickBooks, you must turn on the feature. Follow the below steps to turn on the inventory tracking feature in QuickBooks.

  1. Click on Account and Setting after opening the Menu.
  2. Navigate to the Sales Tab under Account and Settings.
  3. You will see the Inventory Tracking Feature. You will notice the options of Quantity and Price Tracking and Tracking Inventory on Hand. Turn them on.

By the above process, your inventory tracking feature is enabled in your QuickBooks. After enabling this feature, you can input your products, pricing, and the number of available quantities. You can also add inventories, subtract inventories, and add some essential details. These are necessary for proper management of orders and margins.

Proceeding with the Final Setup

To proceed with the final setup of inventory tracking in QuickBooks, you have to access the inventory dashboard, customize it, and finally add new inventories to it. Follow the steps below to proceed with perfection.

Access the Dashboard

Whether you are using an online version or a desktop version, you will have similar features on the dashboard to proceed with any option further. Click on the gear icon to retrieve the menu of QuickBooks. Then, click on 'Products and Services' for accessing the dashboard.

Customize the Dashboard

You can customize the dashboard based on your business model or preference. You can put up all the inventories directly to QuickBooks, or you can also categorize each one of them. It would help if you had an effective plan on customization before finally adding up inventories in QuickBooks.

Add Inventories to QuickBooks

Once you have planned to add inventories to QuickBooks, follow the below-mentioned steps to add catalog successfully in QuickBooks.

  1. Open Products and Services and click New.
  2. Click on Inventory Item. A new window will appear where you can input your inventory product details.
  3. After adding your product details with an SKU code and photo, click Save.

You can also import your existing inventory list from a spreadsheet. Click Product and Services, and choose New. You will see an 'Import' option, where you can upload your spreadsheet. Once you import your spreadsheet, you can still edit any individual product details. You can add or remove quantities or other specific information. You should also note that if your spreadsheet format is similar to the QuickBooks fields, you will need little-to-no editing while you import the list to QuickBooks.

Accessing Inventory Reports in QuickBooks

You must know that using QuickBooks for inventory management is beneficial because you can access the report quickly. To access your inventory report after creating an inventory tracklist in QuickBooks, follow the steps below.

  1. Open the QuickBooks Menu.
  2. Click on the 'Reports' tab.
  3. You will find a 'Run' option below the 'Products/Service List.'
  4. A report will open up on your screen.

You can run the following two reports to track your inventory through QuickBooks.

  1. Inventory Valuation Summary Report
  2. Sales by Product/Service Summary Report

Conclusion

We hope that you have understood all the steps clearly on how to use QuickBooks to track inventory. The user interface of QuickBooks Online, as well as the desktop version, is very simple. You don't need any extra pieces of training or mentorship to run the software for accounting or inventory tracking purposes. In case you face any difficulty in setting up or tracking inventory in QuickBooks, you can contact our experts at qfinancialadvisors@gmail.com. Our experts will connect to you within a time period of 24 hours.

How to Track Inventory Turnover in Quickbooks

Source: https://medium.com/@qfinancialadvisors/how-to-use-quickbooks-to-track-inventory-dc369a74f343